Positive risk tones prevailing again
Wednesday 1 September 2021
Risk sentiment still in happy-clappy mode as a new month begins with equity and commodity markets feeling the love still and that's seen some JPY and CHF supply accelerate putting a base under core pairs too.
OPEC meet today at 15.00 GMT for you oil/CAD/NOK watchers but little change to current policy expected, before which we have some final PMI and employment data from Europe.
Patience and discipline in trading are key as ever and not being greedy.Some good two-way pips to be had so picking your moments and levels are more important than ever.
GBPUSD: The failure of 1.3800 saw a test of 1.3730 amid some firmer USD tones and some pips banked from the rally re-sells as underpinned for the moment helped by the GBPJPY demand. I remain a rally seller while keeping an eye on EURGBP and GBPJPY as always. EURGBP: Still supported between 0.8560-70 after yesterday' failure at the larger sell interest at 0.8600 which I highlighted yesterday.GBPJPY: That good cap at 151.60 held again but after holding 151.00 we've seen a strong move to test 152.00 on the better risk tones. Ranging still overall though.
I remain a GBP rally seller across the pairs but being patient as ever. These are risk sentiment markets and ever fickle so good/tight position management essential.
EURUSD: Holding at 1.1790 now after failing into 1.1850 but ranging still.USDJPY: 109.75-80 finally broke but the larger line at 109.60 still presenting decent support and more pips banked.Re-sells at 110.00 and 110.30 so far and looking to add into 110.50. EURJPY: 130.00 resistance now becoming support having broken amid the better risk demand.Decent sell interest building at 130.50 amd 131.00.USDCHF: Holding 0.9140 now well with the SNB ever vigiliant and helped by better-risk EURCHF demand. EURCHF: 1.0780-00 still providing support per my hghlight yesterday with SNB shadow ever present and risk-on CHF supply. Dip buying still the preferred trade.
AUDUSD: 0.7300 now a decent support line amid firmer metals/better risk but capping at 0.7350 so far.USDCAD: Now supported at 1.2575-80 in the latest retreats after falling from 1.2645 amid the firmer oil tones and CADJPY demand.
Let's continue to be careful out there in all things. Staying safe must be our main priority still.
Interbank rates: 08.33 BST